What Is Facet Wealth's Flat Fee Model?

Facet Wealth operates on a subscription-based pricing model that charges clients a set annual fee instead of the industry-standard percentage of assets under management (AUM). This flat fee structure is divided into monthly payments, creating predictability in your financial planning expenses regardless of your portfolio size.

The company's approach centers on providing dedicated Certified Financial Planner™ (CFP®) professionals who work with clients on a personalized basis. Unlike traditional wealth management firms that may only serve high-net-worth individuals, Facet Wealth's flat fee model makes professional financial planning accessible to a broader range of clients, including those in the early stages of wealth accumulation.

How Facet Wealth's Flat Fee Structure Works

Facet Wealth determines your annual fee based on the complexity of your financial situation rather than the size of your investment portfolio. This complexity assessment considers factors like retirement planning needs, tax considerations, estate planning requirements, and other aspects of your financial life.

The annual fees typically range from approximately $1,800 to $8,000, depending on your specific circumstances and the level of service required. This amount is then broken down into manageable monthly payments. The relationship begins with an initial consultation where Facet Wealth evaluates your financial needs and provides a transparent quote before you commit to their services.

Once enrolled, clients gain access to a dedicated CFP® professional who creates a comprehensive financial plan and provides ongoing advice through regular virtual meetings. The service includes investment management, retirement planning, tax optimization strategies, estate planning guidance, and other financial planning aspects relevant to your situation.

Comparing Flat Fee vs. Percentage-Based Advisory Services

When evaluating financial advisory services, understanding the difference between flat fee and percentage-based models is crucial for making informed decisions about your wealth management approach:

FeatureFacet Wealth Flat FeeTraditional Percentage-Based
Fee StructureFixed annual amountPercentage of assets (typically 1-1.5%)
Cost PredictabilityConsistent regardless of portfolio sizeIncreases as your assets grow
Potential ConflictsMinimized since fee doesn't depend on investment choicesMay incentivize growing assets over other financial goals
Value for Larger PortfoliosMore cost-effective as assets growBecomes more expensive with larger portfolios

Other flat-fee financial planning services include Betterment, which offers a digital-first approach with optional CFP® access, and Personal Capital, which combines digital tools with human advisors. Vanguard Personal Advisor Services uses a hybrid model with a lower percentage fee than traditional advisors but a higher minimum investment requirement than Facet Wealth.

Benefits and Drawbacks of Facet Wealth's Pricing Model

Benefits of the Flat Fee Approach:

  • Transparency - You know exactly what you'll pay annually without surprises
  • Cost efficiency for larger portfolios - As your wealth grows, the relative cost decreases
  • Reduced conflicts of interest - Advisors aren't incentivized to recommend specific investments to increase their compensation
  • Comprehensive service - The fee includes holistic planning beyond just investment management

Potential Drawbacks to Consider:

  • May be relatively expensive for those with smaller portfolios compared to percentage-based models
  • Services are primarily delivered virtually rather than in-person
  • Not ideal for those seeking only investment management without comprehensive planning

For comparison, Wealthfront and Charles Schwab offer different approaches to financial planning services with varying fee structures that might be more suitable depending on your specific needs and preferences.

Determining If Facet Wealth's Flat Fee Is Worth It

When evaluating whether Facet Wealth's flat fee structure provides good value for your situation, consider these factors:

Portfolio Size Considerations: The flat fee becomes increasingly cost-effective as your investment portfolio grows. For example, a $5,000 annual fee on a $1 million portfolio represents just 0.5% of assets - potentially much lower than traditional advisory fees. Conversely, the same fee on a $200,000 portfolio would represent 2.5%, which might be higher than alternatives.

Service Level Evaluation: Facet Wealth provides comprehensive financial planning with dedicated CFP® professionals, which justifies higher fees compared to robo-advisors like SoFi or M1 Finance. Their approach focuses on holistic planning rather than just investment management.

Financial Complexity: If your financial situation involves multiple income streams, tax planning needs, estate considerations, or business ownership, the value of comprehensive planning increases substantially. Facet Wealth specializes in addressing these complex scenarios with personalized guidance that may justify their fee structure.

Conclusion

Facet Wealth's flat fee approach represents a significant departure from traditional financial advisory services, offering predictable costs and comprehensive planning regardless of your asset level. This model is particularly advantageous for individuals with growing wealth who want to avoid the escalating costs of percentage-based advisors. While the flat fee might seem substantial initially, the transparency, dedicated CFP® access, and holistic approach can provide substantial value for those seeking comprehensive financial guidance. Before committing, compare your specific financial needs against the services offered and consider how the fixed cost structure aligns with your long-term financial goals and portfolio growth expectations.

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This content was written by AI and reviewed by a human for quality and compliance.